Why You Need SMS OTP For Your Customers

Published by Viraj on

Nowadays, most customers purchase online from eCommerce websites like Amazon, and Flipkart due to the sheer number of options to choose from. But while you shop online, you usually make the payment online by using a debit or credit card.



However, for a smooth process, in the end, you are asked to type in OTP or a one-time password received via SMS for the transaction to happen. To understand how and why you need SMS OTP, Let’s first understand what is one time pin.

SMS OTP Explained

With the rise in online financial transactions, the chances of fraud and theft are not too far. In the world of cyberspace, many fraudulent imposters are waiting to pounce on your hard-earned money. For that purpose especially banks have made two-factor authentication mandatory when doing any online transaction.

This is an additional layer of security besides your password. Whenever you do an online purchase, to verify your credentials, a one-time pin is sent to your inbox. It’s after typing this code, you can proceed with a transaction.

The OTP which is also called a one-time authentication code saves you from many attacks you are prone to online.

Also Read: SMS Marketing Benefits

Some Features of SMS OTP

  1. OTPs are not vulnerable to replay attacks
  2. Phishing which is a cause of concern for those in cyberspace can be averted
  3. A safe and reliable way to secure online transactions
  4. Recorded OTPs by a third party cannot be used due to expiry time
  5. The system ensures session is not intercepted
  6. Short-time usage does not allow attackers to use OTPs sent on your mobile phones

Even if your cards are stolen by someone, he/she cannot do the online transaction only because the authentication code is sent to your registered mobile number, making his attempt futile.

Types of OTP

> SMS OTP: One of the most common forms of OTP used widely. Here the code is sent in the form of a text message to the user. After a successful login, a code is sent for authentication to complete the process

> Voice SMS: Here the OTP is sent by calling on the registered mobile number. This happens automatically and the user just has to see the process go through. This can be kept as an alternative to SMS OTP.

Where Do We Need & Use SMS OTP


According to a report published in 2017, around US$ 724,000 worth of credit card fraud was reported. This shows how vulnerable are online transactions. Below are the areas where we need to have a two-factor authentication process:

Banking and Fintech companies: To ensure the hard-earned money or savings are secure while doing an online transaction, both these sectors must use this layer of authentication to avoid any fraud.

Government: To ensure the beneficiary is the intended one, different departments can go ahead with the help of a One-time password option.

Online stores: While the customer visits the online store, it must be made mandatory for him to ensure he/she is the actual user while purchasing online. For example, when a special item or one with high value is to be shipped, it is to be read out to the delivery boy at the time of receiving a parcel.

OTP SMS Service From SMSala

Now if you want to make the journey of your users safe and secure, then smsala.com is the service you can rely on. By using our service, you can send out an OTP to verify the identity of a user.

We give you the option to test our service for free to make the benefits of our service known to you. For trial purposes, we provide you with 20 free messages. Besides SMS OTP, you can also send voice OTP for the convenience of clients.

Customers can also use the phone verification API provided by SMSala LLC. Our API allows perfect integration with your existing platform. Here you can check the status of the message and also the response by a receiver at the same time.


Categories: OTP